The UK currency’s strength weighed on the FTSE 100 which was down 0.1%, suffering further after more than £45 billion was wiped off the index just a day earlier.

Multinational stocks on the blue chip index tend to benefit when foreign currencies are stronger.

Ric Spooner, chief market analyst at CMC Markets, said: ‘The outcome of the UK election now adds an element of short-term uncertainty about how the Brexit negotiations will unfold, while the big rally in the British pound has increased volatility and had a knock-on impact on the UK stock market.’

If Conservatives manage to gain a stronger foothold following the election, the Government will have a mandate to push forward the Brexit agenda, which experts say could provide more certainty for investors.

Kathleen Brooks, research director for City Index Direct, said: ‘If the polls are to be believed about the Tory lead over Labour then this election could add certainty to the UK’s Brexit positioning stance and to domestic policy for the next five years, and that is good for markets.’